Higher Oil Price Lifts O&G Stocks

KUALA LUMPUR, Aug 16 (Bernama) -- Oil and Gas (O&G) stocks were generally higher Tuesday due to stronger global oil prices. A dealer said oil prices have started their recovery path largely due to talk of producers taking action to prop up the market amid the supply glut. He said international benchmark Brent crude oil futures were trading at US$48.07 per barrel, as at 12.45 pm, down from US$48.35 per barrel recorded at Monday's close. Among the top O&G gainers were Petron Malaysia Refining & Marketing Bhd, Petronas Gas and Petronas Dagangan which added US$0.05 (20 sen) each to US$1.11 (RM4.45), US$5.61 (RM22.38) and US$5.89 (RM23.50), respectively. (US$1 = RM3.98) Petronas Chemical added a sen to RM6.68 and Bumi Armada rose 3.5 sen to 81.5 sen. Meanwhile, AllianceDBS Research reiterated its 'hold' rating on Petronas Gas with a target price of RM22. "We believe there is limited share price upside potential, though we continue to like the company for its defencive earnings, solid balance sheet and strong parentage," it said in a note. -- BERNAMA